This Hilo Vitamin Business Has Been Losing Money For Months Since Customs Took Its Machine
The feds seized equipment ordered from China by a Hilo dietary supplement company, and the owner is being kept in the dark.
When Don Gleason wanted to buy a new pill-making machine for the dietary supplements his Big Island company sells, it seemed like a simple matter. He ordered the device from China, and it聽arrived in Honolulu in late March.
But the past two months have been anything but simple for the Hilo businessman. Since April 3, the machine has been in a bureaucratic black hole, detained by U.S. Customs in Honolulu for a violation that Gleason says has never been fully explained to him.
That means Gleason can’t fill orders and is losing money.
Even though the machine is somewhere in Honolulu, it isn鈥檛 considered to officially be in the United States.
鈥淯ntil it receives its release,鈥 said JoAnn Winks, a Customs and Border Protection public affairs liaison in Denver, 鈥渋t鈥檚 technically not in the U.S.鈥
Finding out even this much about the machine鈥檚 whereabouts has been difficult for Gleason. Gleason was finally able to reach Customs Officer Lisa Young, who had detained the device, a Civil Beat reporter visited the U.S. Customs Office in Honolulu on Friday and suggested he call her at a different number.
鈥淭he worst thing was the lack of communication,鈥 Gleason said. 鈥淚 heard from no one.鈥
Young said Friday the matter had been turned over to Customs鈥 Fines, Penalties and Forfeitures Office, but declined to comment further. She referred questions to Jim Kosciuk, spokesman for Customs in Honolulu, who said he could not comment about a specific case. A spokeswoman in Denver also said she could not comment.
Gleason said Young also had told him Friday the machine had been sent to the Fines, Penalties and Forfeitures Office, where it is now considered seized.聽 That means it will be subject to an administrative process that could result in the machine being released 鈥 or forfeited permanently without a court hearing.
Gleason鈥檚 company, , sells capsules containing powdered noni, a fruit, said to have medicinal value. It was brought to Hawaii by Polynesian voyagers.
The company has a machine to make big capsules, but Gleason鈥檚 customers in Japan wanted smaller capsules. So he ordered the new machine.
require importers to let the Drug Enforcement Agency know when they want to bring in such encapsulating machines.
Gleason admits he did not initially do this, and that the factory portion of his Hilo business was closed when a DEA agent came to inspect the facility to make sure it was a legitimate business. Those two factors appear to have triggered agents to detain the machine.
Gleason said he wasn鈥檛 too worried when he learned Customs was investigating.
鈥淚 said, 鈥楽ure, investigate it,鈥欌 he said. 鈥淲e鈥檙e a legitimate company.鈥
But Gleason said Customs has been unresponsive to his requests for information.
Gleason said he had repeatedly tried to contact Young, the Customs officer on the detention notice, but that she did return his calls. On Friday, Young told Civil Beat that she had been on leave and that Gleason had been calling her personal number.
Gleason said he called the number left by the DEA agent who had attempted to inspect the factory.
鈥淪he was getting messages from me,鈥 Gleason said, but he heard nothing back.
The situation was compounded by confusion over which form to fill out to obtain the necessary DEA permit. That wasn鈥檛 clear, Gleason said, because the DEA has passed a new requiring an electronic form, but the rule hasn鈥檛 taken effect yet.
It took repeated calls to Washington, D.C., before Gleason got an answer from John Kronebusch, of the DEA鈥檚 Import/Export Unit in Washington, who sent Gleason a copy of the 聽April 3. But at that point, filling out the proper form apparently wasn鈥檛 enough.
Winks, the Customs spokeswoman in Denver, said the Fines, Penalties and Forfeitures Office decides what to do with the item based on a process described in the law. An importer facing seizure has several options, according to Customs’ online聽: for instance, the importer can file a petition to get property back or file a claim with a bond to move the case to court, where a judge would decide what happens to the machine.
Ultimately, the guidance indicates, the matter may turn on whether an importer鈥檚 failure to comply with the law was the result of willful negligence or intent to defraud the government of revenue, or otherwise violated the law.
Gleason said it is little solace that he finally knows the status of the machine and that there is a process for getting it back. Young would not give him the number of the Fines, Penalties and Forfeitures Office in Honolulu, Gleason said, although the number is listed on a public phone directory at the Customs office鈥檚 reception desk next to a phone that visitors can use to call the office.
鈥淣ow I have to try to contact (the Fines, Penalties and Forfeitures Office),鈥 he said. 鈥淎nd I鈥檓 not confident that it will go any more smoothly.鈥
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About the Author
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Stewart Yerton is the senior business writer for 天美视频. You can reach him at syerton@civilbeat.org.